Mercedes-Benz is making a $1 billion bet against Tesla

Daimler AG, the parent company of Mercedes-Benz, is spending $1 billion to start the production of electric vehicles at a factory in Alabama. Blockbuster investment in electric vehicle manufacturing in a US state? Sure sounds like someone's trying to take down Tesla.

The investment will create Daimler's fifth battery plant worldwide, and turn the existing Tuscaloosa, Alabama plant into a big threat to Tesla. It's set to assemble all-electric SUVs, which are designed to take on the Model X and Tesla's upcoming crossover vehicle.